An employee of FTX's charity wing recruited by FTX co-founder Sam Bankman-Fried is seeking a payment of $275,000, the remainder of his claimed 2022 salary bonus.
Ross Rheingans-Yoo Lawyers argument in a Nov. 13 court filing that only $375,000 of his $650,000 bonus was paid by FTX. They claim the remaining funds were owed when the cryptocurrency exchange filed for bankruptcy in November 2022.
Rheingans-Yoo's latest filing comes in response to FTX's objection archived on October 30.
Rheingans-Yoo shared part of a Google document created by Bankman-Fried that described her terms of employment at the FTX Foundation, which included a base salary of $100,000. She claimed that Bankman-Fried told her in a memo
Rheingans-Yoo reiterated that he was not part of Bankman-Fried's "inner circle" and did not know that FTX misappropriated client funds, and his lawyers added:
"Instead, Rheingans-Yoo was a loyal employee who found himself in a mess not of his making."
Rheingans-Yoo claims he is entitled to another $650,000 specifically to donate to charity, a pre-competition salary payment of about $5,700 and a post-petition salary of at least $62,800.
The advisers claim that FTX already paid Rheingans-Yoo his bonus in full because it elected to have the award partially repaid through options in the company's corporate subsidiaries before it filed for bankruptcy.
However, Rheingans-Yoo denies that claim.
The fate of Rheingans-Yoo's bonus will be determined by a Delaware bankruptcy judge overseeing FTX's Chapter 11 bankruptcy.
Related: FTX Files $1 Billion Lawsuit Against Bybit Over Asset Withdrawals
FTX sued Rheingans-Yoo's Latona Biosciences Group, Bankman-Fried and several other defendants in July return 71.6 million dollars in investments and donations allegedly sent to various life sciences companies.
FTX seeks to recover by avoiding transfers of 71.5 million dollars from
Life Sciences, Lumen Bioscience, GreenLight Biosciences Holdings, PBC, Riboscience, Genetic Networks, 4J Therapeutics, Latona Biosciences, FTX Foundation, SBF, Ross Rheingans-Yoo and Nicholas Beckstead pic.twitter.com/T7lF3sZmzN
- Sunil (FTX Creditors Champion) (@sunil_trades) July 20, 2023
The crypto exchange claims that Rheingans-Yoo and Bankman-Fried personally benefited from the investments and donations, but FTX and Alameda Research did not.
"Each of these transfers was made with the intent to hinder, delay, or defraud present or future creditors, a fact known to the FTX Foundation, Latona, and Bankman-Fried."
Rheingans-Yoo says his work at Latona, which involved analyzing potential recipients, speaking to its founders and executives and conducting due diligence, would have produced "positive outcomes for society."
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